Culture-Negative Fibrinous Peritonitis in a Postpartum Female

What Is A Flexible Spending Account (FSA)?

To attract and retain top talent, small businesses can offer their employees comprehensive employee benefits with competitive healthcare coverage and those benefits often go beyond medical insurance. To help cover the cost of eligible medical, dental and vision expenses, many employers offer their employees supplemental healthcare accounts, and one such option is called a healthcare flexible spending account (FSA). Read on to learn what an FSA is and to find out its advantages and disadvantages for both employers and employees.

What is a healthcare flexible spending account?

There are two main types of flexible spending accounts: a healthcare FSA and a dependent care FSA, also known as a dependent care assistance program (DCAP). A healthcare FSA is an employer-owned savings account that an employee funds through untaxed contributions. Employees can use FSA funds to pay for eligible healthcare, dental and vision expenses for themselves, their spouses and eligible dependents. A DCAP also offers tax-free savings, but it focuses on covering employment-related expenses for child care.

Individuals can contribute up to $3,050 per year of pretax income to their healthcare FSA. Unless otherwise specified by the employer, any unspent money is forfeited at the end of the plan year. Employers can permit employees to roll over up to $550 of unused funds or grant them a grace period of up to 2.5 months to spend unused funds at the start of the new plan year. If an employee leaves the company, they often lose the remaining FSA funds unless they are eligible for and choose COBRA continuation coverage.

An FSA is an employer-owned savings account that employees fund with tax-free contributions. The account is used to pay for eligible medical expenses.

How does a healthcare FSA work?

Employees and employers can contribute pretax income to a healthcare FSA and the money can be spent throughout the year on qualified medical expenses, often via a debit card. For employees to be eligible for an FSA, you must offer them a traditional group medical plan and establish a Section 125 Cafeteria Plan.

Section 125 Cafeteria Plan rules dictate how an FSA works. They include the following rules:

Employees elect their contribution amount. Employees choose an FSA annual contribution amount before the start of each 12-month plan year. Elections cannot be changed during the year, except in connection with specific events, such as marriage, the birth of a child or the adoption of a child.

The contribution amount is evenly withheld from each paycheck. The election amount is withheld from the employee's paycheck, before taxes, in equal installments throughout the year. For 2023, the annual limit is $3,050 per employee, an increase of $200 from the year prior. However, employers can choose to set lower limits.

Employees use FSA funds to pay out eligible claims. Claims are paid up to the employee's annual election amount, even if the employee has not contributed the full amount yet. This is called the "uniform coverage rule."

Unused FSA funds are forfeited or rolled over at the end of each year. Employees forfeit their FSA balance at the end of the year if they have not used it for healthcare claims. This is called the "use or lose" rule. Employers may allow a limited grace period or carryover provision to help soften the impact.

Employees forfeit unused funds if they leave the company. IRS rules for cafeteria plans and United States Department of Labor rules for group health plans apply, including requirements for plan documents, nondiscrimination tests and Consolidated Omnibus Budget Reconciliation Act (COBRA) administration. Employees who leave the company lose access to any remaining FSA balance unless they elect COBRA and keep making contributions. COBRA is not available to employers with fewer than 20 workers.

Although FSAs are primarily employee-funded accounts, employers can also make contributions (either up to $500 or up to an amount matching the employee's contribution). Employee contributions aren't reported on employee income tax returns and they can't be claimed as tax deductions. If an employee has both an FSA and a health reimbursement arrangement (HRA), they can't use both accounts to reimburse the same expense. HRA funds are generally used first.

What kinds of expenses are covered under an FSA?

FSAs are often used to pay for the remaining medical, dental or vision costs that aren't covered by insurance, such as co-payments and deductibles. There are several other expenses, benefits and treatments that can be covered by an FSA as well. For example, FSAs can be used to reimburse or pay for over-the-counter prescriptions, vaccines, corrective lenses, dental implants, prescription supplements, acupuncture treatments and more.

When an employee has a healthcare flexible spending account, they are entitled to use the entire election amount as soon as the plan begins, regardless of how much money they have contributed. For example, an employee needs to have emergency surgery at the beginning of their plan year and must immediately pay a $2,500 deductible.

If the employee previously elected to contribute the maximum amount to their FSA over the next 26 pay periods, they could use that FSA election amount to pay their deductible immediately and the employer would continue to withhold the FSA deductions for the remainder of the year.

FSAs can be used for eligible medical, dental and vision expenses for the employee, their spouse and their eligible dependents. These expenses include deductibles, co-pays and prescriptions, among others.

What are the benefits of offering FSAs to your employees?

A healthcare flexible spending account can be a desirable benefit to include in your employee benefits package as FSAs have advantages for both employers and employees. Consider the advantages and how they may affect your bottom line.

Benefits for employers

The primary advantage of offering an FSA to your employees is the financial savings. Because FSA contributions aren't taxed, you avoid the 7.65 percent payroll tax (Medicare and Social Security tax) on employee contributions to FSAs. Although you will be responsible for the cost of maintaining the account, that small amount can be offset by the tax savings and forfeitures.

"The employer's cost of maintaining FSAs is relatively minimal, which costs are offset by the employer's tax savings, and FSAs are a staple of benefit offerings to employees from a recruiting and retention perspective," said Amy Christen, employee benefits attorney and member of Dykema Gossett.

Benefits for employees

FSAs also result in tax savings for employees. FSAs can also give employees some peace of mind because they can use the entire election amount to pay for qualifying claims, even before they make the total contributions. Although employees must continue making those contributions throughout the year, it can be a great benefit to know that they have the money in case of an emergency.

What are the disadvantages of offering FSAs to your employees?

Although FSAs can be a great addition to any employee benefits package, there are a few limitations. For example, a healthcare FSA is considered a group health plan, which is subject to several federal laws.

"For instance, the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code (IRC) require that FSAs meet reporting and disclosure requirements, such as written plan document and summary plan description requirements," Christen said.

Other potential disadvantages of healthcare FSAs include that they must comply with Health Insurance Portability and Accountability Act (HIPAA) privacy and security rules, they operate under a "use it or lose it" policy, they are not portable (meaning employees forfeit the FSA balance if they leave the company) and they are subject to annual nondiscrimination testing under the IRC to ensure the arrangement is not discriminating in favor of highly compensated or other key employees, which can be troublesome to resolve if you fail.

FSAs give employees control of healthcare expenses

For employees who want to maintain control over their healthcare expenses, FSAs give them a handy way to do so. Employer matching contributions also give employees incentive to save in their healthcare accounts. However, the funds stored in an FSA must be used at the end of each year or employees risk losing their FSA money. Still, the flexibility FSAs offer appeal to many employees, so they are a valuable addition to any employee benefits package.

Jacob Bierer-Nielsen contributed to this article. Some source interviews were conducted for a previous version of this article.

Skye Schooley

Business Operations Insider and Senior Lead Analyst at businessnewsdaily.Com

Skye Schooley is a human resources writer at business.Com and Business News Daily, where she has researched and written more than 300 articles on HR-focused topics including human resources operations, management leadership, and HR technology. In addition to researching and analyzing products and services that help business owners run a smoother human resources department, such as HR software, PEOs, HROs, employee monitoring software and time and attendance systems, Skye investigates and writes on topics aimed at building better professional culture, like protecting employee privacy, managing human capital, improving communication, and fostering workplace diversity and culture.

Dairy Producers Can Enroll For 2024 Dairy Margin Coverage Beginning Feb. 28

Payments to Begin Early March 

Vermont Business Magazine Starting next Wednesday, dairy producers will be able to enroll for 2024 Dairy Margin Coverage (DMC), an important safety net program offered through the U.S. Department of Agriculture (USDA) that provides producers with price support to help offset milk and feed price differences. This year's DMC signup begins Feb. 28, 2024, and ends April 29, 2024. For those who sign up for 2024 DMC coverage, payments may begin as soon as March 4, 2024, for any payments that triggered in January 2024.

USDA's Farm Service Agency (FSA) has revised the regulations for DMC to allow eligible dairy operations to make a one-time adjustment to established production history. This adjustment will be accomplished by combining previously established supplemental production history with DMC production history for those dairy operations that participated in Supplemental Dairy Margin Coverage during a prior coverage year. DMC has also been authorized through calendar year 2024. Congress passed a 2018 Farm Bill extension requiring these regulatory changes to the program.

"FSA is announcing the sign up for 2024 Dairy Margin Coverage. We encourage producers to enroll in this important safety net program. In reviewing 2023 margins and the more than $1.2 billion in Dairy Margin Coverage payments issued to producers, Dairy Margin Coverage is proven to be a program to reduce risk for our dairy producers," said FSA Administrator Zach Ducheneaux. "If 2023 taught us anything, it's that we honestly have no idea what will happen in the market in any given year. Producers who took advantage of this affordable risk management tool for the 2023 program year were able to mitigate some financial impacts on their operations. At $0.15 per hundredweight for $9.50 coverage, risk protection through Dairy Margin Coverage is a relatively inexpensive investment in a true sense of security and peace of mind." 

DMC is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer.  In 2023, Dairy Margin Coverage payments triggered in 11 months including two months, June and July, where the margin fell below the catastrophic level of $4.00 per hundredweight, a first for Dairy Margin Coverage or its predecessor Margin Protection Program. 

2024 DMC Coverage and Premium Fees 

FSA has revised DMC regulations to extend coverage for calendar year 2024, which is retroactive to Jan. 1, 2024, and to provide an adjustment to the production history for dairy operations with less than 5 million pounds of production. In previous years, smaller dairy operations could establish a supplemental production history and receive Supplemental Dairy Margin Coverage. For 2024, dairy producers can establish one adjusted base production history through DMC for each participating dairy operation to better reflect the operation's current production.

For 2024 DMC enrollment, dairy operations that established supplemental production history through Supplemental Dairy Margin Coverage for coverage years 2021 through 2023, will combine the supplemental production history with established production history for one adjusted base production history.  

For dairy operations enrolled in 2023 DMC under a multi-year lock-in contract, lock-in eligibility will be extended until Dec. 31, 2024. In addition, dairy operations enrolled in multi-year lock-in contracts are eligible for the discounted DMC premium rate during the 2024 coverage year. To confirm 2024 DMC lock-in coverage or opt out in favor of an annual contract for 2024, dairy operations having lock-in contracts must enroll during the 2024 DMC enrollment period.     

DMC offers different levels of coverage, even an option that is free to producers, minus a $100 administrative fee. The administrative fee is waived for dairy producers who are considered limited resource, beginning, socially disadvantaged or a military veteran. To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the online dairy decision tool.  

DMC Payments 

DMC payments are calculated using updated feed and premium hay costs, making the program more reflective of actual dairy producer expenses.  These updated feed calculations use 100% premium alfalfa hay.  

More Information

USDA also offers other risk management tools for dairy producers, including the Dairy Revenue Protection (DRP) plan that protects against a decline in milk revenue (yield and price) and the Livestock Gross Margin (LGM) plan, which provides protection against the loss of the market value of milk minus the feed costs. Both DRP and LGM livestock insurance policies are offered through the Risk Management Agency. Producers should contact their local crop insurance agent for more information. 

For more information on DMC, visit the DMC webpage or contact your local USDA Service Center.  

USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America's food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit usda.Gov.

WASHINGTON, Feb. 23, 2024 – USDA

FSA Survey Assesses Food Product Compliance

Findings from the testing of food products for authenticity, contaminants, and allergens have been published by the Food Standards Agency (FSA).

The survey is targeted to areas of potential risk and where sampling is needed to inform FSA policy and science. It took place in October 2022 and included products from a typical food basket, plus a range of other items. A total of 1,215 food samples from 28 different commodity types were tested.   

Food samples were bought from national supermarkets and smaller independent retailers in England, Wales, and Northern Ireland, with some purchased online. They were tested for undeclared allergens, contaminants, adulteration, composition, or incorrect labeling.

Samples were analyzed by public analysts, who examined food and feed to check their compliance with relevant laws. They reported 81 percent as satisfactory. The compliance rate for the basket of foods was 86 percent, and 75 percent for surveillance samples. Packaged breads had the lowest compliance rate of the basket of food commodities.

Food samples purchased from small firms were 75 percent compliant, meaning that one in four was unsatisfactory. Samples bought online had a pass rate of 76 percent.

Allergens and authenticityUndeclared allergens were found in 16 percent of samples tested for allergens, making one in six potentially dangerous to those with food allergies.

Highlighted issues included undeclared allergens in some African spices and prepacked food for direct sale (PPDS). Of 267 food products, 27 percent of African spices tested contained undeclared peanut protein, and 17 out of 47 prepacked foods for direct sale had allergens without the correct labeling.

In one pork sausage sample from a small business, 13 percent of sheep DNA was detected as well as pig, but the ingredients list did not mention sheep-derived ingredients.

Authenticity testing was carried out on 437 samples. Four of 30 oregano samples showed the presence of a leaf other than oregano in proportions ranging from 10 to 25 percent. Three were olive leaves. Insect fragments and a small piece of synthetic fiber were also found. One sample had high lead levels, but there is no set limit for lead in dried oregano.

Four of 36 olive oils did not meet compositional requirements, and another five had labeling irregularities. Ten percent of basmati rice samples were adulterated with non-basmati or no approved basmati varieties in one case. One packaged sliced turkey sample contained chicken DNA not declared on the pack. One sample of tinned pork, not produced in the UK, contained an estimated 1 to 5 percent beef, which was not listed on the label.

Providing data on contaminantsAllergens were detected in three samples of vegan ice cream. A total of 66 "free from" products were tested, and higher than permitted gluten levels were found in one sausage sample. A range of 46 plant-based meat substitutes, such as burgers, sausages, and meat pieces, were checked for the declared protein content, and there was an 87 percent compliance rate. 

Edible insect samples were purchased from online suppliers, and all 40 were satisfactory for the heavy metals tested. Two kelp samples had notable levels of inorganic arsenic. Significant levels of iodine were detected in 55 percent of the 45 marine algae samples. 

Of 89 nutmeg, turmeric, and oregano samples tested for mycotoxins, 9 percent had levels above the regulatory limits. These were mainly ground nutmeg.

Professor Rick Mumford, deputy chief scientific advisor and director of science, research, and evidence at the FSA, said: "This survey is designed to help local authorities target their food safety inspections to use their resources more effectively to protect consumers better.

"We have also made available some funding for local authorities in England and Northern Ireland to sample pre-packaged foods and spice blends for allergens for direct sale following the survey results. We will continue to carry out targeted surveillance programs to identify and find emerging risks within the UK food system to help ensure the safety of consumers."

(To sign up for a free subscription to Food Safety News, click here.)

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